Tyrone Synfuel

Rabbit Hash, KY
relocated from Tyrone, PA

Palmer partnered with a tax-oriented investor to acquire a majority interest in a facility constructed and owned by CQ Inc. The facility, initially located in Tyrone, Pennsylvania, combined coal with waste products from a paper mill to produce “E-Fuel” which was developed and patented by CQ Inc. The “E-Fuel” was then sold to the paper mill for fueling its boilers.

When the paper mill was later sold and closed down, the facility was relocated to Kentucky and recommenced operations to produce a different coal-based product for a power plant then operated by Cinergy. In addition to working diligently to find a new location for the facility and negotiating agreements with the new host site, Palmer was able to bring a new investor to the project and structure the resulting transaction.

At its new location, the facility generated in excess of $30 million of federal tax credits per year.

LOCATION: Rabbit Hash, KY relocated from Tyrone, PA
DATE: 1998
TYPE: Waste Coal
PALMER’S ROLE: Sponsor, Co-Investor in Credit Monetization Program
AMOUNT: $116,998,000

Tyrone Synfuel